Interest Rate Mortgages

Many home buyers took advantage of low intereste rates during the GFC. But now they are coming up for renewal and will find it tough to pay. Mark Bouris talks to Andrew Robertson at ABC’s Lateline Business

Analysts have tipped the Reserve Bank to lower Australian interest rates after new data showed a struggling economy and weak job market.

Australia cut interest rates for a second consecutive time, a signal of the growing contagion fears from policy makers worldwide who will also have to contend with a slowing China. Lisa Yuriko Thomas reports.

The Reserve Bank has given borrowers an early Christmas present cutting interest rates by 0.25% for the second month in a row. Watch World News Australia 6.30pm nightly and 9.30pm Mon-Fri on SBS ONE.

Mark Bouris talks to David Koch about Foxed versus Variable rates on Sunrise

RMIT University academic Dr Ashton de Silva from the School of Economics, Finance and Marketing explains how interest rates work. To find out more, check out: www.rmit.edu.au

www.euronews.net Australia’s central bank has cut the cost of borrowing there for the first time since the global financial crisis more than two years ago. As expected the benchmark rate was reduced by 0.25 percent to 4.5 percent. That was in response to low inflation in Australia and threats to the global economy from Europe’s debt problems. The Australian dollar slipped after the Reserve Bank of Australia cut rates saying inflation was now likely to be more consistent with its long-term target in both 2012 and 2013.

Why I believe the Australian Reserve Bank has made a mistake in cutting interest rates.

www.globalchange.com Why governments are changing interest rate policies and targeting slightly higher inflation rates. Risks of targeting inflation rates as low as 2% with little room for macro-economic shocks or deflationary events. Predictions by many economists have been unreliable in the 2008-2011 global crisis, partly because economists tended to underestimate the financial and political complexities. Challenges to global economy and vulnerability of some developed nations to deflation, despite short term inflation caused by higher oil prices and other commodity shortages. Economic outlook for US and Europe in the midst of urgent attempts to avoid another recession. Managing additional pressures to national economies from possible breakup of Eurozone, default by Greece on government debt and contagion across Europe, impacting credit ratings of other nations, and solvency of European banks. What will interest rate policy be of European Central Bank, Federal Reserve and Bank of England. Conference keynote speaker Patrick Dixon at TRET event for Real Estate Agents and Property Developers.

The Reserve Bank board has once again held interest rates steady in the fact of an uncertain global environment and fears about Europe and the US.